IRVINE, Calif., March 1, 2004 (PRIMEZONE) -- Mergence Corporation's (OTCBB:MRGN) wholly owned subsidiary Oxford Media Corporation announces today that it has signed a letter of intent ("LOI") to acquire eMOD Systems, Inc. eMOD (e-movies on demand) is a digital solutions company concentrating on high-quality distribution of digital video content to the hotel industry. The terms of the acquisition have yet to be finalized and will require the approval of both companies' Board of Directors.
eMOD Systems, Inc. offers hotels a new low-cost Video On Demand pay-per-view system that is remotely monitored and programmed with no front desk involvement. For the past several years the large hospitality entertainment systems have been limited to properties of 300 rooms or more due to the high upfront costs, as well costly maintenance of the systems. eMOD has changed that with a new low-cost system targeted towards the 250,000 hotel rooms having no pay-per-view service.
According to Tom Hemingway, Chairman and CEO, "We agree with eMOD's management that now is the time to effectively move into the Video On Demand pay-per-view market with a low-cost system that allows virtually any property to offer these services. Our system plays movies using the existing cabling matrix available in every hotel -- cutting one-half of the cost of tape-based systems. Mergence Corporation and Oxford Media look to acquire companies that are synergistic with our operations and meet a number of requirements. eMOD exceeded our requirements."
About eMOD Systems, Inc.
eMOD Systems, Inc. offers hotels a new low-cost Video On Demand pay-per-view system that is remotely monitored and programmed with no front desk involvement. The eMOD system is a digital file server located within the hotel property connected to each room via a simple set-top box addressable decoder. The largest cost in providing pay-per-view is the content distribution. Movie files of all types can now be sent and stored on an inexpensive hard drive using existing radio frequency cabling in the building and existing phone systems to pay for and forward the movie to the buyer.
About Mergence Corporation
Mergence Corporation, founded in 1994, is a Delaware corporation headquartered in Irvine, Calif. Mergence manages wholly-owned subsidiaries in the emerging hotel/motel movie-on-demand market and in the software technologies industry. Mergence Corporation provides merger and acquisition services to companies with promising services and/ or products.
Safe Harbor
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; react to quarterly fluctuations in results; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These are and will be detailed, from time to time, in Mergence's Securities and Exchange Commission filings, including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from management's expectations.